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Old 05-31-2017, 06:42 PM
 
1 posts, read 848 times
Reputation: 10

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When did the rental tax commence in Phoenix ?

There are references from a January 5,2016 article by AZ realtycom, that an individual owner would not be taxable.
Certainly welcome clarification of this situation.

I own only one condo in Phoenix and by chance discovered there is a transaction privilege tax.
Wow who dreams up these names.

It appears prior to 2010 there was no rental tax if you owned solely one unit.

Certainly welcome input on this transaction privilege.
Sounds like this tax could be a euphemism for some kind of nefarious activity.

What does a person do to come on side with the taxing authorities ?
And what are the penalties.
Appears that the maximum penalty is 25% of the amount due if one were to have paid this tax on a timely basis.

I don't live in USA, but that is no excuse.
Certainly welcome the readers input.



Neil

Last edited by Calvin Neil; 05-31-2017 at 07:37 PM.. Reason: receiving no responses
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Old 05-31-2017, 11:16 PM
 
848 posts, read 967,666 times
Reputation: 1346
I don't know, but it was by far the absolute most completely ridiculous thing I discovered when moving here. I mean, seriously? Yeah, ok. Charge me a tax on my rent. Got it.
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Old 05-31-2017, 11:23 PM
 
3,819 posts, read 11,942,828 times
Reputation: 2748
My understanding is that as a landlord you only have to start paying the transaction privilege tax once you own 4+ properties. 3 or less and it's not owed.
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Old 05-31-2017, 11:33 PM
 
Location: Rural Michigan
6,341 posts, read 14,687,030 times
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Quote:
Originally Posted by HX_Guy View Post
My understanding is that as a landlord you only have to start paying the transaction privilege tax once you own 4+ properties. 3 or less and it's not owed.
Depends on the municipality- some make you pay on the 1st rental, some the third - and if there is a property manager, they have to collect it on every rental. That said, it isn't much of a tax - more hassle than it's worth to collect if you only have one or two rentals.
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Old 05-31-2017, 11:44 PM
 
Location: Tempe and Payson
1,216 posts, read 3,029,527 times
Reputation: 1707
This should help clarify:

https://www.phoenix.gov/financesite/...20rental%20tax
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Old 06-04-2017, 04:09 PM
 
2,379 posts, read 2,711,644 times
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A "privilege" tax? Omigod.
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Old 06-06-2017, 05:28 PM
 
13 posts, read 14,039 times
Reputation: 17
Yeah, I'm learning this the hard way as well. Moving from CA to AZ and discovered that the tax structure is somewhat confusing as well as some rental properties telling me and my fiance that we are "technically" married since we've been together for 11 years....something about common law marriage.

All these exceptions and hidden rules is pretty confusing. Just trying to find a place to live!
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